MILKSHAKE®

Climate change is driving higher average temperatures and more intense, longer lasting heat waves in the US causing heat stress in livestock which significantly reduces dairy cow milk production*. AIR Parametric’s Milkshake® provides dairy farmers compensation for lost revenue and higher expenses when the temperature-humidity index (THI) reaches higher-than-normal levels, impacting a herd’s milk production and quality.
*2022 Cornell University study
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Dairy Industry Pain

Dairy is a global industry, with losses due to heat stress estimated at well over $1 billion per year in the US alone. Today, dairy farmers use costly climate-controlled barns, sprinklers, and fans to mitigate bovine heat stress, but these methods restore only a portion of a herd’s milk production and are very expensive to operate. Creditors are now concerned about severe weather’s impact on farm revenue volatility, and traditional commercial insurance options do not cover weather-related risks of lost production

A Better Solution

Milkshake’s proprietary products and pricing models utilize leading weather data and geospatial technology, embedded AI technology, and 24/7 monitoring ensuring transparency and immediacy, and dramatically simplify claim processes for policyholders and distribution partners.

Clear and simple triggers remove the mystery of claims
Immediate, automated claims processing, providing funds to customers in real time after a loss event
Continuous weather data monitoring allowing insurance carriers to project and quickly react to outcomes
New product innovation, even when there is sparse historical claim data available
Aggregate capacity and limits to cover all sizes of dairy farms
Proprietary modeling, accounting for historical and projected weather of the farm location
Covers currently uninsurable risk, and addresses existing gaps left by traditional products

Three Main Risks for Dairy Farmers

USDA’s Dairy Revenue Product

Revenue protection coverage: milk product pricing fluctuations
Upcoming quarterly revenue declared in 5% increments
Premiums and coverage based upon milk futures market
Payout: actual vs. expected revenue of actual milk product output
Does not cover conditions leading to production loss (damage to property, death of cows, lack of feed/water etc.)

Asset Protection

Property damage to barns
Suits alleging contaminated milk
Accidents involving your vehicles
Injured employees
Milkshake®
Coverage provided for THI conditions causing volume shortfalls or lower quality product
Simple contract that pays predetermined amount quickly when THI thresholds are breached
Heat and humidity readings or strike points that must be met for payout
Precise location-based weather measurements
Did cost of feed increase, more expense for electricity or water?
Payout: simple and fast, less than 1 week from triggering conditions to payment
Online claims reporting and payment process

WEATHER.BI®

Weather.BI® provides business owners lost revenue compensation when specified weather events, such as wildfires or rainfall events, significantly reduce sales — even when there is no physical property or equipment damage.

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Business Interruption is Painful

US small and mid-sized businesses — numbering over 30 million — are exposed to business interruption risk from a range of weather events and natural catastrophes, such as wildfires, extreme temperatures or extraordinary amounts of rain. Traditional commercial insurance options require physical damage to property or equipment to allow reimbursement for business interruption. Many weather-related events don’t cause physical damage -- but still significantly impact a business’s revenue -- causing pain for owners and employees, especially in the retail, service and hospitality sectors which rely so heavily on customer foot traffic.

A New Solution

Weather.BI’s products and pricing models utilize proprietary weather data and geospatial technology, embedded AI technology, and 24/7 monitoring ensuring transparency and immediacy, and dramatically simplify the process for policyholders, underwriters, claims staff, and our distribution partners.

Clear and simple triggers remove the mystery of claims
Immediate claims processing, providing funds to customers in real time after a loss event
Covers currently uninsurable risk, and addresses existing gaps left by traditional products
Coverage for two predetermined weather perils (such as extreme temperature, wildfire, excess rainfall) and
corresponding trigger thresholds depending on the customer’s ZIP code
Designed as an embedded product feature of existing affinity-based insurance program
Flexibly designed to be delivered by MGAs and Program Administrators as a monoline or companion endorsement to other insurance products